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The New Jersey Division of Taxation is providing businesses and individuals with unpaid tax liabilities the chance to clear their accounts. Taxpayers can pay any outstanding tax bills that have been issued by the Division of Taxation with reduced or eliminated penalties, no collection cost and no recovery fees. The program is open to taxpayers with outstanding tax liabilities for the tax periods 2005 through 2013. From September 17 until November 17, 2014, taxpayers can visit the New Jersey Division of Taxation website, agree to enter into a closing agreement with the Division, and remit their payment. Per the agreement, both parties will stipulate that the matter is closed, and the taxpayer will waive his or her right to any further administrative review or judicial appeal. Payments can be made online or by mail. Once the offer expires on November 17, 2014, taxpayers who have not cleared their tax liabilities will remain on record as owing their full liability, including normal penalties, interest, collection costs and/or recovery fees. (Press Release, State of New Jersey Department of the Treasury, September 17, 2014)

(09/29/2014)

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act (ITFA) through December 11, 2014 as part of the joint resolution which made continuing appropriations for fiscal year 2015. The ITFA was previously set to expire on November 1, 2014. The ITFA bars state and local governments from imposing multiple or discriminatory taxes on electronic commerce and taxes on Internet access.

 

For an update to this news item, see Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced.

 

(P.L. 113-164 (H.J. Res. 124), 113th Congress, 2nd Session, Laws 2014)

(09/26/2014)

New Jersey becomes the 14th state that has enacted legislation creating a sales and use tax click-through nexus provision. The New Jersey legislation states that a person making sales of taxable tangible personal property, specified digital products, or services is presumed to be soliciting business through an independent contractor or other representative if the person enters into an agreement with an independent contractor having physical presence in New Jersey or other representative having physical presence in New Jersey, for a commission or other consideration, under which the independent contractor or representative directly or indirectly refers potential customers to the person, whether through a website link or otherwise.  In order for the click-through provision to apply, cumulative gross receipts from sales to customers in New Jersey who were referred by all independent contractors or representatives that have this type of an agreement with the person making sales must be in excess of $10,000 during the preceding four quarterly periods ending on the last day of March, June, September, and December. The presumption may be rebutted by proof that the independent contractor or representative with whom the person has an agreement did not engage in any solicitation in New Jersey on behalf of the person that would satisfy the nexus requirements of the U.S. Constitution during the four quarterly periods in question. (Ch. 13 (A.B. 3486), Laws 2014, effective June 30, 2014, applicable on or after July 1, 2014)

(07/21/2014)

The Streamlined Sales and Use Tax (SST) Governing Board has  issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are to complete and publish their position on the best practices.  The matrix outlines if the “best practiceas approved by the Streamlined Sales Tax Governing Board (SSTGB) for each of the products, procedures, services, or transactions identified in the chartis followed by the specific state. The following best practice descriptions are listed in the matrix along with whether the state follows the best practice:

 

1.       The member state administers the difference between the value of a voucher allowed by the seller and the amount the purchaser paid for the voucher as a discount that is not included in the sales price (i.e., same treatment as a seller’s in-store coupon), provided the seller is not reimbursed by a third party, in money or otherwise, for some or all of that difference.

2.       The member state provides that when the discount on a voucher will be fully reimbursed by a third party the seller is to use the face value of the voucher (i.e., same as the treatment of a manufacturer's coupon) and not the price paid by the purchaser as the measure (sales price) that is subject to tax.

3.       The member state provides that costs and expenses of the seller are not deductible from the sales price and are included in the measure (sales price) that is subject to tax. Further, reductions in the amount of consideration received by the seller from the third party that issued, marketed, or distributed the vouchers, such as advertising or marketing expenses, are costs or expenses of the seller.

 

Unless otherwise listed below, the SST member states have published the Best Practices Matrix and follow the three best practices listed above.

 

The following SST member states have issued the matrix but don’t follow some or all of the best practices listed above as of April 2014: Georgia, Kansas, Nebraska, New Jersey, and Ohio.

 

The following SST member states have not yet issued the matrix as of April 2014: Tennessee, Utah, Vermont, and Wyoming.  Copies of the matrix can be found on each specific state information page on the SST Web page at http://www.streamlinedsalestax.org/index.php?page=state-info.

(05/06/2014)

New Jersey has amended various sales and use tax rules to conform to the provisions of the Streamlined Sales and Use Tax (SST) Agreement. The amendments include clarifying exemption certificate issuance and acceptance procedures, retention of records, adding a definition for "Model 4 seller," and correcting typographical errors. (N.J.A.C. 18:24-5.16, 18:24-7.17, 18:24-10.2, 18:24-10.3, 18:24-10.4, 18:24-10.5, 18:24-10.6, 18:24-11.2, 18:24-19.7, 18:24B-1.1, 18:24B-1.2, 18:24B-1.5, 18:24B-1.6, 18:24B-1.7, and 18:24B-1.9, New Jersey Division of Taxation, effective March 17, 2014)

(05/06/2014)

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